D076 unit 4 - Study guides, Class notes & Summaries

liquidity ratio - is a measure of not only how much cash you have but also how easily you can convert short-term assets into cash. activity ratio - the firm's operational efficiency and profitability. activity ratio - efficiency ratio leverage ratio - financing ratios or solvency ratios leverage ratio - how the firm is financed. profitability ratio - based on either sales or asset investment market ratios - used to evaluate the current share price of a public firm's stock. liquidity ra...

liquidity ratio - is a measure of not only how much cash you have but also how easily you can convert short-term assets into cash. activity ratio - the firm's operational efficiency and profitability. activity ratio - efficiency ratio leverage ratio - financing ratios or solvency ratios leverage ratio - how the firm is financed. profitability ratio - based on either sales or asset investment market ratios - used to evaluate the current share price of a public firm's stock. liquidity ra...

Firm A has an average collection period of 67 days, and the industry norm is 40 days. What can the firm do in order to be competitive with accounts receivable management in the industry? - Tighten the credit standards for its customers. MiniCo recently spun off of BigCo. Both companies have the same leverage and asset turnover ratios, but MiniCo is underperforming on its return on equity to shareholders. If MiniCo would like to improve its return on equity, which action would help? - Reduce...

Firm A has an average collection period of 67 days, and the industry norm is 40 days. What can the firm do in order to be competitive with accounts receivable management in the industry? - Tighten the credit standards for its customers. MiniCo recently spun off of BigCo. Both companies have the same leverage and asset turnover ratios, but MiniCo is underperforming on its return on equity to shareholders. If MiniCo would like to improve its return on equity, which action would help? - Reduce...

Ratios are useful for analyzing and comparing company performance for at least four different reasons: - Standardization Flexibility Focus Evaluation You can standardize the companies' net incomes by - dividing both by the total sales of those companies. This will help you to see how much income in percentage terms was earned from the total sales made during the year. Standardization - ratios standardize financial data, thus making it comparable across firms—even those of distinctly ...

liquidity ratio - is a measure of not only how much cash you have but also how easily you can convert short-term assets into cash. activity ratio - the firm's operational efficiency and profitability. activity ratio - efficiency ratio leverage ratio - financing ratios or solvency ratios leverage ratio - how the firm is financed. profitability ratio - based on either sales or asset investment market ratios - used to evaluate the current share price of a public firm's stock. liquidity ra...

Firm A has an average collection period of 67 days, and the industry norm is 40 days. What can the firm do in order to be competitive with accounts receivable management in the industry? - Tighten the credit standards for its customers. MiniCo recently spun off of BigCo. Both companies have the same leverage and asset turnover ratios, but MiniCo is underperforming on its return on equity to shareholders. If MiniCo would like to improve its return on equity, which action would help? - Reduce...

WGU D076 Final Exam Review (Finance Skills for Managers) Questions With Answers Latest Update 2023/2024 | Graded A+. The nominal interest rate of an investment is 8%, and the inflation rate is 3%. What is the real interest rate? - Answer 5% (Correct. Real Rate = Nominal Rate - Inflation, so 8% - 3% = 5%.) Which action reduces the future value of cash flows? - Answer Receive all cash flows later than expected. (Correct. The later the cash flows are received, the lower the future value is.) ...

WGU D076 Final Exam Review (Finance Skills for Managers) Questions With Answers Latest Update 2023/2024 | Graded A+. Which financial institution specializes in managing and administering retirement funds? - Answer Pension funds (Correct! Pension funds specialize in retirement funds.) Which type of economic indicator is the consumer price index? - Answer Lagging indicator (Correct! CPI usually changes after the economy as a whole changes.) What does the term ethical refer to? - Answer The a...

(TEST) Finance Skills for Managers - D076 Questions and Answers Rated A UNIT 2 What are the main services offered by financial institutions? Accepting a wide variety of deposits, offering investment products, providing loans, and brokering financial transactions (Correct! Financial institutions such as banks, insurance companies, and mutual fund companies provide these services.) What is the main objective of personal financial goals? To maximize individual utility (Correct! You set goals a...